new Delhi. Currently, the country is facing the brunt of the corona virus. Which has had the greatest impact on small businesses and entrepreneurs. Although a relief package of Rs 3 lakh crore has been given to small traders, even then small businesses are not able to stand on their feet. Today we are going to tell you about those government loan schemes which can help you stand once again at the time of Kovid. The government has launched several subsidy and loan schemes, supporting the entrepreneurs of the country to run small and successful businesses. Let us also tell you what those plans are…
Prime Minister’s Mudra Yojana
Under the Micro Units Development and Refinance Agency, PMMY provides loan options to meet the economic needs of various sectors and business activities as well as business and entrepreneurial segments. Normally, banks extend loans up to Rs 10 lakh to MSMEs without any guarantee.
worth: Small non-corporate businesses consisting of proprietorship and enterprise firms in rural and urban areas can apply for loans. Small manufacturing units, service sector units, shopkeepers, fruit and vegetable vendors, truck operators, food-service unit units, under NCSBS Mudra loan loans can be found in all types of construction, trade and service sector activities like repair shops, machine operators, small industries, artisans, food processors etc.
There are three types of loans
Shishu lone: Up to Rs 50,000
Kishore lone: 50,000 to 5 lakh rupees
Tarun Lone: Rs 5 lakh to Rs 10 lakh
MSME Business Loan for Start-up in 59 minutes
MSME Business Loans are offered for start-up in 59 minutes and their interest rate is 8.50%. Run by the Credit Guarantee Fund Trust under Micro and Small Enterprises, the initiative aims to automate various processes for loan evaluation in such a way that one gets the eligibility letter as well as loan approval within 59 minutes. Applicant can choose bank of his choice. Normally the loan amount is disbursed within 7-8 working days of sanctioning.
worth : To be eligible for this special loan, the customer has to be GST, income tax payer and have a tax history of at least 6 months.
Fiscal stimulus: Under this scheme, business loans for start-ups are provided for a minimum amount of Rs 1 lakh to Rs 5 crore. The interest rate of this scheme is 8.50 percent.
Credit guarantee scheme
The Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme was launched by the government to strengthen and facilitate the loan disbursement system of MSMEs. Public, private and foreign banks as well as Regional Rural Banks and SBI along with their associate banks are involved in the lending institutions under this scheme.
worth : Excluding retail trade, educational institutions, agriculture, self-help groups, new and existing Russians engaged in construction or service activities, training institutes are eligible for this scheme.
Fiscal stimulus: This scheme of MSME for entrepreneurs includes term loan and working capital facility up to 2 crore. Guarantee cover is available up to 75% of the loan amount or up to Rs 1.5 crore. Micro enterprises have a credit facility of up to 85% on loans up to Rs 5 lakh. MSME-owned women operating in the North Eastern Region including Sikkim get 80 per cent credit facility. The 50% guarantee cover for MSME retail trade is a maximum of Rs 50 lakhs.
SIDBI Make in India Soft Loan Fund
Launch Smile in the year 2015 is operated by Small Industries Development Bank of India. The objective of the scheme is to provide soft loans to meet the loan-equity ratio required for setting up of new MSMEs. The rate of interest offered under this scheme is 8.36 per cent.
worth : New businesses across the board along with existing manufacturing and service sectors can apply for the scheme. Existing enterprises will also be given loans under this scheme for undertaking upgradation or other projects to expand their business. The maximum loan repayment period is 10 years, which includes a moratorium period of 36 months (the time between the commencement of repayment after getting the loan). The minimum amount given under the smile scheme is Rs 25 lakh.
Small Industries Development Bank of India was started by Stand Up India to provide funds to SC / ST and women entrepreneurs. The scheme provides loans ranging from Rs 10 lakh to 1 crore to at least one SC / ST and one female customer per bank branch.
worth : Businesses from the business, manufacturing, or service sectors are considered eligible for this plan. In case of non-individual enterprises, at least 51% stake should be held by SC / ST or women entrepreneurs.
It provides loans ranging from Rs 10 lakh to Rs 1 crore to cover 75 per cent of the project. Under this, loans up to 75% of the cost of the project are given. This will not be applicable if the remaining 25 per cent of the loan holder will take money from any other loan scheme. The rate of interest will be the lowest applicable rate – (Base rate (interest)) + 3% + tenure premium.
Bank credit facility scheme
The scheme, run by the National Small Industries Corporation, aims to meet the loan requirements of MSME businesses. The National Small Industries Corporation has signed an MoU with various nationalized and private sector banks for this purpose. Through syndication with these banks, the National Small Industries Corporation provides credit support (fund- or non-fund-based limits) from banks to MSMEs at no cost.